Good morning traders!
The S&P 500 ($SPY) is trading above yesterday’s close. Let’s get into it…
Powell has another reason to be pessimistic because of Biden’s student loan stimulus. Although its consequences would be felt sooner, President Biden’s proposal to cancel $300 billion in student loans seems to have the midterm elections in November in mind. At a time when consumers are experiencing financial strain, the cancellation of up to $10,000 in federal student loan debt for borrowers earning less than $125,000 annually and an additional $10,000 for those receiving needs-based Pell Grants adds up to an economic stimulus. It serves as a reminder of the elements outside of Powell’s control that he must take into account if inflation is to be brought down from 8.5% to its 2% objective as markets sag ahead of what is anticipated to be a hawkish Jackson Hole address on Friday. We advise everyone to size down, and trade with caution as the market could go either direction very quickly.
Potential Intraday Resistance Levels:
Pre-Market High: $417.91
5D EMA (1Y:1D): $416.68
9D EMA (1Y:1D): $418.18
Potential Intraday Support Levels:
8/25/22 Market Close: $413.67
8/25/22 Intraday Support: $412.45
8/25/22 Low of Day: $411.39
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Thursday Economic Events:
GDP 8:30am ET
Initial Jobless Claims 8:30am ET
EIA Natural Gas Report 10:30am ET
KC Fed Mfg Index 11:00am ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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